Fly ash bricks to attract same concessional rate irrespective of fly ash content

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Background:

Earlier, the CBIC issued Notification No. 10/2019-Central Tax dated March 7, 2019 (i.e., compulsory registration a person engaged in supply of fly ash bricks etc. irrespective of the threshold limit), Notification No. 14/2019 – Central Tax dated March 7, 2019 (i.e. manufacturer of fly ash bricks etc. not eligible for composition scheme) and Notification No. 02/2022-Central Tax (Rate), dated the March 31, 2022 (i.e. concessional rate on supply of fly ash bricks etc.) (“Earlier Notifications”).

Further, the GST Council’s 47th meeting was held in Chandigarh on June 28-29, 2022 under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman, wherein, recommendations were made for the same concessional rate on all fly ash bricks, irrespective of fly ash content and to omit the condition of 90% or more fly ash content.

Accordingly, the recommendation has been notified vide following notification:

Notification:

Now, the CBIC vide Notification No. 10/2022 Central Tax (Rate), Notification No. 15/2022-Central Tax and Notification No. 16/2022-Central Tax all dated July 13, 2022 has issued amendments in its Earlier Notifications, so as to simplify the measure and done away with the condition of 90% fly ash content w.r.t. fly ash bricks w.e.f. July 18, 2022, in a following manner:

  • Substituted the words “Fly ash bricks or fly ash aggregate with 90 per cent. or more fly ash content; Fly ash blocks” with “Fly ash bricks; Fly ash aggregates; Fly ash blocks” so as to apply same concessional rate on fly ash bricks irrespective of its content.

Similar changes have been made in Notification No. 1/2017- Central Tax (Rate), Notification No. 1/2017- Integrated Tax (Rate), and Notification No. 1/2017- Union Territory Tax (Rate) all dated June 28, 2017.

The Notification No. 10/2022 Central Tax (Rate) can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009440/ENG/Notifications

The Notification No. 10/2022 Integrated Tax (Rate) can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009460/ENG/Notifications

The Notification No. 10/2022 Union Territory Tax (Rate) can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009448/ENG/Notifications

The Notification No. 15/2022-Central Tax can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009442/ENG/Notifications

The Notification No. 15/2022 Union Territory Tax (Rate) can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009442/ENG/Notifications

The Notification No. 16/2022-Central Tax can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009443/ENG/Notifications

The Notification No. 16/2022 Union Territory Tax (Rate) can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009443/ENG/Notifications

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